DB:5CW

Stock Analysis Report

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Executive Summary

Crown Resorts Limited operates in the entertainment industry primarily in Australia.


Snowflake Analysis

Very undervalued with excellent balance sheet.

Share Price & News

How has Crown Resorts's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 5CW has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.9%

5CW

-1.7%

DE Hospitality

0.2%

DE Market


1 Year Return

-29.5%

5CW

-34.4%

DE Hospitality

4.5%

DE Market

Return vs Industry: 5CW exceeded the German Hospitality industry which returned -34.4% over the past year.

Return vs Market: 5CW underperformed the German Market which returned 4.5% over the past year.


Shareholder returns

5CWIndustryMarket
7 Day-0.9%-1.7%0.2%
30 Day-7.5%-7.9%6.4%
90 Day16.6%9.7%16.9%
1 Year-24.3%-29.5%-31.5%-34.4%6.8%4.5%
3 Yearn/a-48.8%-55.8%3.0%-5.0%
5 Yearn/a-50.9%-61.2%9.9%-4.8%

Price Volatility Vs. Market

How volatile is Crown Resorts's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Crown Resorts undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 5CW (€5.55) is trading below our estimate of fair value (€14.38)

Significantly Below Fair Value: 5CW is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 5CW is good value based on its PE Ratio (13.9x) compared to the DE Hospitality industry average (20.2x).

PE vs Market: 5CW is good value based on its PE Ratio (13.9x) compared to the German market (21.2x).


Price to Earnings Growth Ratio

PEG Ratio: 5CW is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: 5CW is good value based on its PB Ratio (1.2x) compared to the DE Hospitality industry average (2x).


Next Steps

Future Growth

How is Crown Resorts forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

22.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 5CW's forecast earnings growth (22.6% per year) is above the savings rate (0.2%).

Earnings vs Market: 5CW's earnings (22.6% per year) are forecast to grow faster than the German market (22.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 5CW's revenue (15% per year) is forecast to grow faster than the German market (5.9% per year).

High Growth Revenue: 5CW's revenue (15% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 5CW's Return on Equity is forecast to be low in 3 years time (8%).


Next Steps

Past Performance

How has Crown Resorts performed over the past 5 years?

0.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 5CW has high quality earnings.

Growing Profit Margin: 5CW's current net profit margins (14.9%) are lower than last year (16.7%).


Past Earnings Growth Analysis

Earnings Trend: 5CW's earnings have grown by 0.4% per year over the past 5 years.

Accelerating Growth: 5CW's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: 5CW had negative earnings growth (-10.1%) over the past year, making it difficult to compare to the Hospitality industry average (-15.6%).


Return on Equity

High ROE: 5CW's Return on Equity (8.8%) is considered low.


Next Steps

Financial Health

How is Crown Resorts's financial position?


Financial Position Analysis

Short Term Liabilities: 5CW's short term assets (A$797.6M) exceed its short term liabilities (A$721.9M).

Long Term Liabilities: 5CW's short term assets (A$797.6M) do not cover its long term liabilities (A$1.5B).


Debt to Equity History and Analysis

Debt Level: 5CW's debt to equity ratio (16.1%) is considered satisfactory.

Reducing Debt: 5CW's debt to equity ratio has reduced from 59.5% to 16.1% over the past 5 years.

Debt Coverage: 5CW's debt is well covered by operating cash flow (99.3%).

Interest Coverage: 5CW's interest payments on its debt are well covered by EBIT (33.7x coverage).


Balance Sheet


Next Steps

Dividend

What is Crown Resorts's current dividend yield, its reliability and sustainability?

6.59%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 5CW's dividend (6.59%) is higher than the bottom 25% of dividend payers in the German market (1.24%).

High Dividend: 5CW's dividend (6.59%) is in the top 25% of dividend payers in the German market (3.77%)


Stability and Growth of Payments

Stable Dividend: 5CW's dividend payments have been volatile in the past 10 years.

Growing Dividend: 5CW's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (91.3%), 5CW's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 5CW's dividends in 3 years are not forecast to be well covered by earnings (104% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.1yrs

Average management tenure


CEO

Ken Barton (54yo)

0.50

Tenure

AU$2,895,501

Compensation

Mr. Kenneth M. Barton, also known as Ken, BEc, CA, F FIN serves as Chief Executive Officer and Managing Director of Crown Resorts Limited since January 24, 2020 and served as its Chief Financial Officer si ...


CEO Compensation Analysis

Compensation vs Market: Ken's total compensation ($USD2.02M) is about average for companies of similar size in the German market ($USD2.41M).

Compensation vs Earnings: Ken's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Kenneth Barton
CEO, MD & Director0.50yrAU$2.90m0.021% A$796.8k
John Alexander
Executive Director13yrsAU$4.47m0.059% A$2.2m
William Nisbet
Executive Vice President of Strategy & Development12.25yrsAU$3.54m0.034% A$1.3m
Barry Felstead
Chief Executive Officer of Australian Resorts6.92yrsAU$2.99m0.026% A$992.8k
Alan McGregor
Chief Financial Officer0.33yrno datano data
Mary Manos
General Counsel & Company Secretary3.08yrsno datano data
Karl Bitar
Executive Vice President of Group Marketing & Brand Strategyno datano datano data
Michael Neilson
Executive Officer3.08yrsno datano data
Jacinta Cubillo
Human Resources Coordinatorno datano datano data

3.1yrs

Average Tenure

54yo

Average Age

Experienced Management: 5CW's management team is considered experienced (3.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kenneth Barton
CEO, MD & Director0.50yrAU$2.90m0.021% A$796.8k
John Alexander
Executive Director13yrsAU$4.47m0.059% A$2.2m
Guy Jalland
Non-Executive Director2.25yrsno datano data
Harold Mitchell
Independent Non-Executive Director9.42yrsAU$197.10k0.017% A$639.6k
Andrew Demetriou
Independent Non-Executive Director5.5yrsAU$180.68kno data
Michael Johnston
Non-Executive Director13yrsno datano data
John Poynton
Non-Executive Director1.67yrsAU$181.17k0.00015% A$5.7k
Antonia Korsanos
Independent Non-Executive Director2.17yrsAU$250.53k0.0015% A$55.8k
John Horvath
Independent Non-Executive Deputy Chairman0.50yrAU$310.53kno data
Helen Anne Coonan
Independent Non-Executive Chairman0.50yrAU$219.00k0.0015% A$55.8k
Sarah Halton
Independent Non-Executive Director2.17yrsAU$197.10k0.00014% A$5.3k

2.2yrs

Average Tenure

61.5yo

Average Age

Experienced Board: 5CW's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Crown Resorts Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Crown Resorts Limited
  • Ticker: 5CW
  • Exchange: DB
  • Founded: 2007
  • Industry: Casinos and Gaming
  • Sector: Consumer Services
  • Market Cap: AU$6.169b
  • Listing Market Cap: AU$3.769b
  • Shares outstanding: 677.16m
  • Website: https://www.crownresorts.com.au

Number of Employees


Location

  • Crown Resorts Limited
  • Crown Towers
  • Level 3
  • Southbank
  • Victoria
  • 3006
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CWNASX (Australian Securities Exchange)YesOrdinary SharesAUAUDDec 2007
CWLD.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDDec 2007
5CWDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2007
CWNCHIA (Chi-X Australia)YesOrdinary SharesAUAUDDec 2007
CWLD.YOTCPK (Pink Sheets LLC)UNSPONSORD ADRUSUSDNov 2008

Biography

Crown Resorts Limited operates in the entertainment industry primarily in Australia. It operates in four segments: Crown Melbourne, Crown Perth, Crown Aspinalls, and Wagering & Online. The company owns and operates two integrated resorts, including Crown Melbourne and Crown Perth. Its Crown Melbourne resort comprises 2,628 gaming machines and 540 gaming tables; the Crown Towers Melbourne hotel with 481 guest rooms, the Crown Metropol Melbourne hotel with 658 guest rooms, and the Crown Promenade Melbourne hotel with 465 guest rooms; a conference center; banqueting facilities; restaurants and bars; and designer brands and retail outlets. The company’s Crown Perth resort includes the Crown Towers Perth hotel with 500 guest rooms; the Crown Metropol Perth hotel comprising 397 guest rooms; the Crown Promenade Perth hotel with 291 guest rooms; 2,500 gaming machines and 350 gaming tables; a 1,500-seat Crown Ballroom and 2,300-seat Crown Theatre; convention facilities; and restaurants and bars, and a resort. It also operates owns and operates the Crown Aspinalls, a casino in London; and engages in wagering and online social gaming activities. The company was formerly known as Crown Limited and changed its name to Crown Resorts Limited in October 2013. Crown Resorts Limited was incorporated in 2007 and is based in Southbank, Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/14 21:34
End of Day Share Price2020/07/14 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.